Damage reports indicate floodwaters have reached homes and several roads throughout Ruidoso are covered with water. 

Water rescues were underway across the city as the Rio Ruidoso reached over 20 feet – several feet over major flood stage at 15 feet, the NWS reported. If confirmed, it would be a record crest.

Photos posted by NWS Albuquerque show the Rio Ruidoso's rapid rise in the Hollywood neighborhood of Ruidoso, as the flood wave made its way through the river. 

"A DANGEROUS situation is unfolding in RUIDOSO!" NWS Albuquerque wrote. "A FLASH FLOOD EMERGENCY remains in effect! Seek HIGHER GROUND NOW! Do NOT attempt to drive through the floodwaters. The current will carry away your vehicle!" 

Storm reports from the National Weather Service office in Albuquerque paint ominous signs of the impacts of the flash flood.

Witnesses reported a home being swept away along a swollen river behind a brewery in Ruidoso.  In Hollywood, spotters reported a man and two children were washed away. Another spotter reported a car being swept by flood waters.

Many others were reportedly trapped.  Multiple water rescues were needed for residents at Galivan Trailer Park. A man and two children were also trapped in a home near Ruidoso Downs. In the Alto neighborhood, an elderly woman was trapped in her home and needed rescue.

There is no word yet on the fate of those swept away or trapped. But city emergency officials said they've established a number where residents can report any family members missing due to the floods. 

Between 1.5 and 2.5 inches of rain fell in a short time, and another half inch of rain is possible by late evening. 

Find more updates on this story at FOXWeather.com.